[Article] NVDA Elliott Wave Update 4.23.24 – W4 achieved but 5th wave still in play

**NVDA Elliott Wave Update – April 23, 2024**

The semiconductor giant NVIDIA (NVDA) made waves today with a notable gapped-up opening. In the intricate world of Elliott Wave Theory, this development signals an intriguing shift that warrants a closer look.

**Key Highlights:**

– **Reversal at .382:** NVDA managed to reverse .382 of its downward 3, reaching the $800 mark. This move is indicative of a Wave 4 (W4) formation in the Elliott Wave sequence.

– **W4 and its Implications:** The emergence of a W4 typically halts the progress of a downward Wave 3. This suggests a potential pause or breather in the broader downtrend.

– **Potential for a 5th Wave:** While the W4 formation is a positive sign for NVDA, it doesn’t entirely negate the possibility of a 5th wave down. This scenario is contingent on the broader market conditions, particularly the NASDAQ’s ability to maintain its upward trajectory.

Given the dynamics at play, the market’s next moves could be pivotal for NVDA and the broader tech sector.

**Market Context:**

The broader market sentiment remains uncertain. While NVDA’s reversal is encouraging, it’s crucial to view this within the context of the NASDAQ’s performance. If the NASDAQ fails to sustain its upward momentum, it could exert downward pressure on NVDA, potentially leading to the feared 5th wave down.

**What to Watch For:**

1. **NASDAQ’s Performance:** A sustained upward movement in the NASDAQ could validate NVDA’s W4 formation and push the stock higher.

2. **Market Sentiment:** Ongoing market sentiment and news can influence NVDA’s short-term movements. A shift in the broader market sentiment could either strengthen or weaken NVDA’s position.

3. **Key Resistance and Support Levels:** Keeping an eye on crucial resistance and support levels can provide insights into NVDA’s potential movements.

**Conclusion:**

While NVDA’s W4 formation is a positive sign in the Elliott Wave context, traders and investors should remain vigilant. The potential for a 5th wave down, coupled with the broader market volatility, suggests a cautious approach may be warranted.

As always, it’s essential to monitor the market closely, keeping an eye on both technical indicators and broader market trends to make informed trading decisions.